Growth through internationalization of Russian SMEs in Finland

The study examines Russian SMEs motives, needs, prospects and constrains to enter Finland through Lappeenranta. Russian entrepreneurship is a young phenomenon in Finland. The present research becomes a first guide in understanding of Russian SMEs’ capabilities for establishing their subsidiaries in Finland. The extensive model of different theoretical approaches was created for evaluating Russian SMEs growth and internationalization opportunities. The findings of the research indicated that Russian growing companies chose the internationalization to continue their development. Many Finland’ positive conditions were evaluated as important for the Russian entrepreneurship. Finland was the first European country of the expansion to the European Union, for the Russian SMEs established the subsidiaries in Lappeenranta. Their motives for entering Finland were usually based on market and resource views. Generally, the Russian SMEs establish a new company in Finland only when they have sufficient capabilities and resources for internationalization. Entering Finland the Russian firms make better the allocation of their natural, financial and human resources.

Factors affecting regional SMEs progression to Digital Business Ecosystems

SMEs are widely recognized as an important driving force of economic growth, yet, their uptake of ICT is still very low. Tosupport SMEs ICT adoption and to foster regional development, in 2000, the Lisbon Strategy on the Information Society andKnowledge-based economy created a vision for 2010 towards the creation of the European Digital Business Ecosystems(DBE). This paper is positioned within that context and reports upon a project involving 6000 SMEs whose aim was tosupport ICT adoption and to encourage SME networks through the creation of a Regional Business Portal. The papere xplores factors affecting the regional SMEs participating in the DBE. An in-depth longitudinal case study approach was adopted and multiple sources of evidence were used. Many factors affecting SMEs progression to DBE were identified:including people and organization, environmental, diffusion networks, technological, regional and time factors

Learning to lead for business growth – implications for supporting SMEs in Wales

The Welsh private and third sectors are heavily dependent on SMEs. Consequently the performance of SMEs is critical to the performance of the Welsh economy. Substantial public funds, particularly from European Structural Funds, have been allocated to support these since 2000. The majority of programmes thus funded have been led from within the Welsh Government. This paper reports interim evaluation findings from one intervention led by two Welsh higher education institutions (HEIs), namely the LEAD Wales programme. The programme is an extended intervention to support the leadership skills of owner-managers and incorporates a range of learning methods, including formal masterclasses, but emphasizes situated and experiential learning through action learning, coaching and peer-to-peer exchange exercises. The programme’s impact is assessed on the experiences of 325 participants, of whom 217 have completed the programme. The paper concludes that situated learning methods, through which participants are able to draw from shared history and experience over an extended period are critical to programme success. By contrast, short-term thematic teaching, based around more formal, hierarchical learning is less likely to yield significant and sustainable economic benefits. The implications of this for business support in Wales are discussed.

Building SME competitiveness in the European Union and Latin America and the Caribbean: policy proposals by the private sector

Includes bibliography

Latin America and the Caribbean and the European Union: striving for a renewed partnership

Includes bibliography

Reinforcing production cooperation and dialogue spaces: the role of SMEs

Foreword by Alicia Bárcena and Jorge Valdez

Why a more accurate EU definition of SMEs matters. ECMI Commentary No. 35, 15 November 2013

As part of the European Union’s commitment to deliver greater access to finance for small- and medium-sized enterprises (SMEs), EU policy-makers will have to deal with a fragmented market landscape and responses by individual member states to address failures. On the basis of some early evidence, this Commentary calls for a rethinking on the part of the EU of its definition of an SME, which currently does not take into account the internal market dimension. A more accurate definition, reflecting the internal market and the stages of evolution of a firm and its financing needs, would allow better benchmarking and a comparison of policy responses that often claim to address market failures in SME finance.

Collateral and Credit Rationing. The role of collateral in explaining and remediating the limited flow of credit to households and SMEs. ECRI Policy Brief No. 7, February 2014

European-wide data concerning both companies and households indicate that the credit rationing phenomenon, which has been predicted by theory, does in fact occur to a significant degree in the European credit market. Among SMEs, micro companies are most vulnerable and the current economic crisis has only made these concerns more pressing. Top-down use of the monetary transmission mechanism alone is insufficient to counter the problem. The other solution consists of a bottom-up, microeconomic stimulation of lending transactions, by focusing on collateral and guarantees. The data confirm the high importance that lenders – especially individual households and micro companies – attach to collateral and guarantees when making their lending decisions. As a consequence, we would argue that those parts of the law governing security interests and guarantees should be one of the primary targets for government policy aimed at improving credit flows, especially in avoiding a conflict between consumer protection measures and laws on surety and guarantees. This policy brief firstly aims to give an overview of the problem of credit rationing and to show that low-income households and SMEs are most concerned by the phenomenon. Focusing solely on loans as a way of financing and on the issues related to access to finance by micro and small companies as well households, it then sketches possible solutions focused on guarantees. This paper brings together data from the Eurosystem Household Finance and Consumption survey (HFCS), Eurostat, and both the latest wave of the extended biennial EC/ECB Survey on the access to finance of SMEs (EC/ECB SAFE 2013) and the latest wave of the smaller semi-annual ECB SAFE Survey, covering the period between October 2012 and March 2013.

Supporting Access to Finance by SMEs: Mapping the initiatives in five EU countries. ECMI Research Report No. 9, April 2014

This paper maps the initiatives to support access to finance for small- and medium-sized enterprises (SMEs) that were available at national level in 2012 in the five biggest European economies (Germany, France, the UK, Italy and Spain). This mapping distinguishes initiatives promoted and financed primarily through public resources from those developed independently by the market. A second breakdown is proposed for those sources of finance with different targets, i.e. whether the target is debt financing (typically bank loans at favourable conditions, public guarantees on loans, etc.) or equity financing (typically venture capital funds, tax incentives on equity investments, etc.). A broad set of initiatives has been implemented to close the funding gap of SMEs in these five countries. The total amount of public spending for SMEs, however, has remained well below 1% of GDP. Public subsidisation of bank loans has been by far the most diffused type of intervention. Despite the fact that this strategy might prove to be effective in the short term, it fails to address long-term sustainability issues via a more diversified set of financing tools.

Financing European Defence: Time to Call the European Investment Bank? IES Policy Brief Issue 2014/05/July 2014

Summary. Financing research and development programmes have never been more expensive in Europe. Defence budgets are on the wane, international competition is fierce and high-end technologies are increasingly expensive. Europe’s defence-industrial base is under significant strain, and options are needed to fund elements of a sector that is still crucial to Europe’s security and industry. This Policy Brief argues that the European Investment Bank could play a much greater role in Europe’s defence sector. As a public-private institution the Bank could serve as a life-line to defence R&D, dual-use projects and support for SMEs, especially where regional clusters are involved.

Capital Markets Union: A Work in Progress: Quick and high impact measures for the Capital Markets Union. European Policy Brief No. 37, September 2015

Capital Markets Union has three objectives. The first objective is to improve access to finance for all businesses but especially SMEs; the second is to increase the share of capital markets in the funding mix of the real economy; and the third is to make capital markets more effective and integrate them more closely across borders. This paper examines the best impact measures for the Capital Markets Union to proceed successfully.

Towards an inter-organisational knowledge transfer framework for SMEs

This paper aims to develop a framework for SMEs to help them understand, and thus to improve, the process of knowledge exchange with their customers or suppliers. Through a review of the literature on knowledge transfer, organisational learning, social network theory and electronic networks, the key actors, key factors and their relationships in the process are identified. Finally, a framework containing all above points is proposed.

SMEs in a globalised world:survival and growth strategies on Europe's geographical periphery

This insightful book shows how small and medium enterprises (SMEs) from some of the traditionally less dynamic peripheral economies of the 'old' EU - namely Ireland, Italy, Portugal and Spain - have responded to the twin challenges of globalisation and industrial restructuring. Through a series of unique case studies the contributing authors discuss how these economies, and in particular the SME sector, can be transformed. The book begins by examining the key drivers of the globally competitive SME sector in the EU, before moving on to explore the relationship between multinational enterprises (MNEs), SMEs and industrial development. The authors investigate important policy implications and provide lessons for SME development and growth. With empirical and theoretical contributions on SMEs in both the manufacturing and the services sectors, this essential book will be invaluable for researchers and policymakers in small business economics and management. Postgraduate students of entrepreneurship, business economics, industrial economics and European studies will appreciate this unique set of insights.